SAP SE (SAP) - Get Report shares surged Friday, closing higher by 9.5% at $126.20 after the company announced a change in its leadership.

CEO Bill McDermott will step down after nine years at the helm. The move is effective immediately, while board members Jennifer Morgan and Christian Klein will take over as co-CEOs.

SAP then pre-released better-than-expected third-quarter results, beating on both earnings and revenue expectations.

While the 10% move comes on a very bullish day in the markets, one can't help but notice how well the stock is doing despite a very good CEO leaving after almost a decade at the company. It makes SAP a perfect candidate for Real Money's Stock of the Day.

The price action is admittedly a bit peculiar, but a look at the charts suggests a move to new highs is certainly possible at this point. Let's take a closer look. 

Trading SAP Stock

Weekly chart of SAP stock.

Friday's move is quite impressive, as shares rocketed off support. On the weekly chart above, investors can see that SAP stock is still about $14 (or 11%) from its high set back in July.

The long-term look also shows that SAP stock has been making a series of higher highs, trending upward over the last five years. It's a nod to how well McDermott has done at the company.

In any regard, the 50-week moving average held as support, as did the $115 level. $115 was support this time around, after serving as resistance in late 2017 and early 2018. On the rally, SAP stock has reclaimed the 10-week moving average, as well as the $122 level.

So can investors bank on new highs? Nothing is guaranteed -- particularly in this market environment -- but if SAP can continue higher, not much stands in the way of hitting its former highs.

Shares are over all of its major moving averages on both the daily and weekly charts, with the 78.6% retracement near $131 being the only technical hurdle in the way. Over that and the highs near $140 are possible. A further rally could carry SAP stock to the $145 to $150 area, where it will find channel resistance (blue line).

On the downside, bulls will want to see the 100-day moving average at $124.60 hold as support, as well as the 61.8% retracement at $123.12. Below that and a drop to sub-$120 could be in the cards.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.